ACCT444 Week 6 Quiz Latest 2017 (Score 100%)

QuestionQuestion 13 / 3 pts(TCO 9) The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called thetolerable exception rate.estimated population exception rate.acceptable risk of overreliance.sample exception rate.Question 23 / 3 pts(TCO 9) A sample in which every possible combination of items in the population has an equal chance of constituting the sample is arandom sample.statistical sample.judgment sample.representative sample.Question 33 / 3 pts(TCO 9) To determine if a sample is truly representative, an auditor mustconduct multiple samples of the same population.never use sampling because of the expense involved.audit the entire population.perform none of the above.Question 43 / 3 pts(TCO 9) The most important aspect of evaluating the client's method of obtaining a reliable cutoff is toperform extensive detailed testing of cutoff.evaluate the client's control procedures around cutoff.confirm a sample of transactions near period end with customers.perform any of the above.Question 53 / 3 pts(TCO 9) The understatement of sales and accounts receivable is best uncovered byconfirming receivables.reviewing the aged trial balance.test of transactions for shipments made but not recorded.reconciling the accounts receivable general ledger account with the schedule of accounts receivable.Question 63 / 3 pts(TCO 9) For most audits, inherent risk for accounts receivable is moderate or low except for which balance-related audit objectives?Timing and realizable valueCompleteness and existenceExistence and accuracyRealizable value and cutoffQuestion 73 / 3 pts(TCO 9) An auditor should perform alternative procedures to substantiate the existence of accounts receivable whenno reply to a positive confirmation request is received.no reply to a negative confirmation request is received.collectibility of receivables is in doubt.pledging of the receivables is probable.Question 83 / 3 pts(TCO 9) Which of the following does not have to be considered in determining the initial sample size of a test of details?Tolerable misstatementAcceptable risk of incorrect rejectionEstimate of misstatements in the populationEach of the above must be consideredQuestion 93 / 3 pts(TCO 9) Sampling risk maybe controlled byreducing down the sample size.using only random sampling.using the sample technique most appropriate for the population.using audit software.Question 103 / 3 pts(TCO 9) The acceptable risk of incorrect acceptance is most related toaudit efficiency.audit results.audit effectiveness.None of the above